Hong Kong Pharmacy Digital Technology (HKPD.US) IPO priced at $4-$6/share, raising $8mn

Hong Kong Pharmacy Digital Technology, which provides cross-border supply chain and distribution services for over-the-counter drugs, filed a preliminary prospectus with the U.S. Securities and Exchange Commission on Tuesday to raise up to $8 million in an initial public offering.

The company plans to issue 1.5 million shares at a price range of $4 to $6 (33% in the secondary market) to raise $8 million. At the midpoint of the proposed range, Hong Kong Pharmacy Digital Technology's market value would be $55 million.

The company's business mainly consists of two categories: cross-border supply chain services for over-the-counter drugs and cross-border procurement and distribution of over-the-counter drugs. Through cooperation with over-the-counter drug suppliers, logistics companies, and merchants operating stores on e-commerce platforms in China, the company provides a one-stop solution for Chinese customers who wish to purchase over-the-counter drugs outside of the Chinese mainland. Its services include pre-consultation, product information review, and procurement of overseas over-the-counter drugs.

Hong Kong Pharmacy Digital Technology's revenue for the 12 months ended March 31, 2024 was $17 million. The company plans to list on the Nasdaq under the symbol HKPD. It filed confidentially on March 29, 2024. Bancroft Capital and Eddid Securities are joint bookrunners for the transaction.